[ EDITORIAL ]

New Tax Rates: Lakeland Proposals Worrying

THE LEDGER

Published: Sunday, August 31, 2014 at 12:29 a.m.

Last Modified: Sunday, August 31, 2014 at 12:29 a.m.

The city of Lakeland has a $7.5 million shortfall to make up in its fiscal year. Raising and implementing other taxes and fees causes concern, especially when Polk has maintained the same property tax rate every year since 2007.

2015 budget, which starts Oct. 1.

Unlike any of us, who must generally cut expenses if we are in the same situation, the city has decided to look at varying sources of revenue that will hit you in the pocketbook if you live within city limits.

We understand the need to occasionally raise revenue and even to bring electric rates in line with those of other municipalities. But when the city of Mulberry has decreased its tax rate two years in a row, on a much smaller tax base, we wonder why the city of Lakeland is considering three options — all of which are likely to happen to some extent:

■ Increase property taxes: The increase could be as much as $2 per $1,000 of taxable property value, although the city's finance director said it would not have to be that high if the city increases the Lakeland Electric rate. But they would have to raise it at least 20 cents to make up for the $700,000 reduction in the dividend Lakeland Regional Medical Center pays the city. Here's the range, based on the $135,000 median value of homes in Polk County in July taking $50,000 in exemptions: $17 for a 20-cent increase to $170 for a $2 hike. That's on top of what you paid last year — 4.6644 mills. The proposed rate this year, 6.6911 mills, can be decreased but not increased at this point. According to the note of proposed property taxes the county sent out two weeks ago, the city could have reduced taxes to 4.4501 and still brought in the same amount of money.

■ A 3 percent increase in Lakeland Electric rates, which would generate about $3.8 million — added to the $24 million the utility pays the city each year.

■ A proposed fire fee, a new source of revenue to fund the Fire Department: $206 a year for homeowners. Residents in apartments or duplexes would pay almost $135 a year, and businesses would pay 28 cents per square foot. That would provide $17.1 million to the Fire Department, which would no longer be paid for out of the city's general fund. That alone is double the $7.5 million shortfall the city faces this year, which means other increases should not even be discussed.

On a somewhat agreeable note for the hospital, the city agreed to compromise with LRMC, which wanted its dividend to be held at the current rate of $12.1 million a year for five years. The city agreed to raise it to $12.9 million for the next two years, instead of the $13.6 million it could have asked for this year.

THERE'S GOT TO BE A BETTER WAY

Still, raising and implementing other taxes and fees causes concern, especially when the county has maintained the same property tax rate every year since 2007. The message commissioners sent the county manager: We won't raise taxes, so plan accordingly.

Lakeland commissioners could and should deliver the same message. At the very least, the city owes residents an accounting of what it has done to hold down costs before moving ahead with these increases. Has Lakeland tightened its belt the way many families have in recent years? If so, tell us.

Here's what we see:

■ The city of Lakeland's general fund has increased $12,857,000 since 2008. During that time it has eliminated 73 positions.

■ The city of Winter Haven — whose general fund is about one-third of Lakeland's — has increased its general fund $606,586 during the same time frame; it's eliminated 58 positions.

■ Polk County, which has a general fund roughly three times that of Lakeland's, reduced its general fund by $42,000,000 from 2008 and cut 256 jobs.

Each budget has nuances that make it unique, but you can use the figures to get a general idea of how a city or county is being operated. For instance, the county's budget will drop significantly next year when it finishes building roads and parks.

Lakeland city commissioners will meet again Thursday to discuss the budget, then take a final vote on it and the property tax rate on Sept. 16. If you want your voice to be heard, head to City Hall before it's too late.

<p>The city of Lakeland has a $7.5 million shortfall to make up in its fiscal year. Raising and implementing other taxes and fees causes concern, especially when Polk has maintained the same property tax rate every year since 2007. </p><p>2015 budget, which starts Oct. 1. </p><p>Unlike any of us, who must generally cut expenses if we are in the same situation, the city has decided to look at varying sources of revenue that will hit you in the pocketbook if you live within city limits.</p><p>We understand the need to occasionally raise revenue and even to bring electric rates in line with those of other municipalities. But when the city of Mulberry has decreased its tax rate two years in a row, on a much smaller tax base, we wonder why the city of Lakeland is considering three options — all of which are likely to happen to some extent: </p><p>■ Increase property taxes: The increase could be as much as $2 per $1,000 of taxable property value, although the city's finance director said it would not have to be that high if the city increases the Lakeland Electric rate. But they would have to raise it at least 20 cents to make up for the $700,000 reduction in the dividend Lakeland Regional Medical Center pays the city. Here's the range, based on the $135,000 median value of homes in Polk County in July taking $50,000 in exemptions: $17 for a 20-cent increase to $170 for a $2 hike. That's on top of what you paid last year — 4.6644 mills. The proposed rate this year, 6.6911 mills, can be decreased but not increased at this point. According to the note of proposed property taxes the county sent out two weeks ago, the city could have reduced taxes to 4.4501 and still brought in the same amount of money.</p><p>■ A 3 percent increase in Lakeland Electric rates, which would generate about $3.8 million — added to the $24 million the utility pays the city each year. </p><p>■ A proposed fire fee, a new source of revenue to fund the Fire Department: $206 a year for homeowners. Residents in apartments or duplexes would pay almost $135 a year, and businesses would pay 28 cents per square foot. That would provide $17.1 million to the Fire Department, which would no longer be paid for out of the city's general fund. That alone is double the $7.5 million shortfall the city faces this year, which means other increases should not even be discussed. </p><p>On a somewhat agreeable note for the hospital, the city agreed to compromise with LRMC, which wanted its dividend to be held at the current rate of $12.1 million a year for five years. The city agreed to raise it to $12.9 million for the next two years, instead of the $13.6 million it could have asked for this year. </p><p><B>THERE'S GOT TO BE A BETTER WAY</B></p><p>Still, raising and implementing other taxes and fees causes concern, especially when the county has maintained the same property tax rate every year since 2007. The message commissioners sent the county manager: We won't raise taxes, so plan accordingly.</p><p>Lakeland commissioners could and should deliver the same message. At the very least, the city owes residents an accounting of what it has done to hold down costs before moving ahead with these increases. Has Lakeland tightened its belt the way many families have in recent years? If so, tell us.</p><p>Here's what we see: </p><p>■ The city of Lakeland's general fund has increased $12,857,000 since 2008. During that time it has eliminated 73 positions.</p><p>■ The city of Winter Haven — whose general fund is about one-third of Lakeland's — has increased its general fund $606,586 during the same time frame; it's eliminated 58 positions.</p><p>■ Polk County, which has a general fund roughly three times that of Lakeland's, reduced its general fund by $42,000,000 from 2008 and cut 256 jobs.</p><p>Each budget has nuances that make it unique, but you can use the figures to get a general idea of how a city or county is being operated. For instance, the county's budget will drop significantly next year when it finishes building roads and parks. </p><p>Lakeland city commissioners will meet again Thursday to discuss the budget, then take a final vote on it and the property tax rate on Sept. 16. If you want your voice to be heard, head to City Hall before it's too late.</p>